ISLAMABAD: As biofuels now account for one per cent of global energy use, a report on the ‘State of the Global Biofuels Market’ released by the United Nations Conference on Trade and Development (UNCTAD) on Monday says second generation technologies, climate change concerns and economic pressures are shaping the future of the increasingly important sector.
“While alternative energy sources are growing faster than any other source, they still account for a very limited share of primary energy demand. Therefore they are not expected to replace fossil fuels but to play a complementary role in satisfying the world energy demand,” it says.
Also read: Biofuels — wasted energy
It notes that bio-ethanol and bio-diesel have become established products traded daily in all continents thanks to their use in the transport sector, especially for road vehicles.
An important development has been the emergence of alternative markets for liquid biofuels, which are now used in commercial aviation, electricity generation, cooking and even maritime transport.
The report contains policy recommendations for developing countries to make beneficial use of biofuels, and suggests creation of regulatory frameworks tailored to national resource endowments which do not antagonise food and energy supplies but rather enhance agricultural productivity, rural income and workers’ skills.
The development of competitive second generation biofuels, made from woody crops, agricultural residues or waste (unlike first generation biofuels made from the sugars and vegetable oils found in arable crops) will pose a number of challenges to developing countries, it says.
One key recommendation of the report is a call for international strategies to avoid the emergence of a technological gap between land-intensive first generation and capital-intensive second generation biofuels.
It advises developing countries to ensure that the cost of sustainability certification is spread along supply chains in a way which protects small farmers from undue cost burdens and promotes a continuous inflow of private investment and process technologies, particularly through predictable business environments.
Developing countries should prioritise research and deployment of advanced technologies which can convert non-edible biomass into bio-energy products in collaboration with other countries to reduce costs, and facilitate trade by engaging in consultations and adoption of regulations compatible with sustainability rules adopted in major markets.
The report says a large potential remains to be exploited in the sustainable production of first generation biofuels in developing countries. Efficiency considerations continue to indicate that feedstock and biofuel production can be done most favourably in developing countries, where the climate to grow them and low-cost farm labour exist.
But, it says, energy security considerations have prompted less-efficient countries to engage in biofuel production irrespective of economic and environmental considerations. International trade in biofuels can provide win-win opportunities to all countries as several countries need the trade route to guarantee the attainment of self-imposed blending targets.
Published in Dawn, November 4th , 2014
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